Safe and Sound

CLEVELAND SELFRELIANCE

PARMA, OH

5

Star Rating

CLEVELAND SELFRELIANCE is an NCUA-insured credit union started in 1994 and currently based in PARMA, OH. As of December 31, 2017, the credit union had assets of $88.7 million.

Members have $24.9 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $24.9 million. CLEVELAND SELFRELIANCE's 3,582 members currently have $73.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CLEVELAND SELFRELIANCE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a cushion against losses and as protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

CLEVELAND SELFRELIANCE racked up 26 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

CLEVELAND SELFRELIANCE had a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

CLEVELAND SELFRELIANCE beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's test of earnings, CLEVELAND SELFRELIANCE scored 4 out of a possible 30, failing to reach the national average of 10.11.

One sign that CLEVELAND SELFRELIANCE is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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